Debit Cards Cutting Into ATM Action
Even though more and more automated teller machines are being placed in off-premise locations such as convenience stores, ATMs are actually seeing less action these days, according to the 2006 EFT Data Book by ATM&Debit News. The reason for less usage is that more people are using the cards for purchases instead of withdrawing cash at ATMs for those purchases.
The statistics shows that overall ATM transaction volume dipped 4.6 percent in March of 2005 over March of 2004. The year before that, it had increased by about 2 percent.
The nation's largest ATM network, Star, reported a 14.2 decline for in-network ATM volume, which does not count gateway or on-us transactions in which consumers use their own banks' machines. At the same time, the installed base of ATMs increased by 3.2 percent for the year.
Consumers who use their own banks' machines, however, have increased over the last year, the book says.
Copyright © 2005 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 15, No. 11, 11/05
First published on 11/01/2005